The Arkansas Connection

By John Greenwald

It's a long way from Little Rock to Jakarta, but the details of a close Arkansas-Asia relationship have emerged in the controversy over foreign contributions to the Democrats. Asian business interests have had a foothold in Arkansas since the 1970s; now they are neck deep as a result of disclosures that Arkansas-Asia ties have also included sizable campaign gifts. Republicans say the money bought White House influence, but so far there is no proof that the contributions affected Administration policies. A look at those who have prospered from or promoted the Arkansas-Asia connection:

Mack Mclarty A Clinton kindergarten chum and former chairman of natural-gas giant Arkla Inc., McLarty was Clinton's first chief of staff. This Arkansas executive was the Administration's point man in reaching out to the business community and was an architect of the tycoon-friendly policies now tripping up the White House. He urged Administration officials not only to listen to executives, but also to pursue their requests on issues such as regulation, taxes--and trade. He also brought Mark Middleton to the White House staff. Middleton would later become embroiled in controversy over allegedly blurring the lines between the White House and private overseas business activity.

John Huang A Democratic fund raiser who raised millions from his fellow Asian Americans, Huang once worked for the Lippo Group. He was dropped as a fund raiser last month amid controversy over several large gifts, including $425,000 from an Indonesian couple with Lippo ties. Republicans say Huang's reported White House visits this year show improper influence, but Democrats now say there was a second John Huang--the other one helped out on Vice President Gore's "reinventing government" efforts--and that some of the White House log entries were his.

James Riady Scion of the powerful Indonesian family that controls the multibillion-dollar Lippo Group, James Riady was future fund raiser John Huang's boss at Lippo. Riady arrived in Arkansas in the 1970s and met Clinton there. His family gave $200,000 to the Democrats in 1992 and 1993. He has met with Clinton to discuss foreign trade.

Mark Grobmyer A Little Rock lawyer and Clinton golfing pal, Grobmyer has worked for the Lippo Group and other Asian firms. One of his Indonesian trips won notoriety after reports that he handed out cards identifying himself as "White House Liaison," which he has denied. He has made frequent White House visits, including an April 1993 drop-in with James Riady.

James Wood As Washington's unofficial ambassador to Taiwan, which the U.S. does not formally recognize, Arkansas lawyer Wood holds a post usually reserved for foreign-service officers. The Justice Department is looking into allegations that he sought campaign contributions from Taiwanese businessmen, which he denies.

Mark Middleton Dubbed the Aryan Rotarian for his blond good looks and business acumen, this University of Arkansas graduate worked for McLarty in the White House until last year, and is now active in U.S.-Asia trade. A Taiwanese contact says he held himself out as a presidential aide in Taiwan this year and gave out a White House phone number, which he denies.

C. Joseph Giroir Jr. A former Rose Law Firm managing partner who helped hire Hillary Rodham Clinton, Giroir established a company shortly after Clinton's election to bring together the Lippo Group and American firms looking to do business in Asia. Last year he accompanied Riady and Huang to visit Clinton in the White House.

Jackson Stephens Little Rock billionaire Stephens' investment-banking firm, Stephens, Inc., is the nation's largest outside New York City. He met James Riady's father, Lippo Group head Mochtar Riady, in the 1970s, and bragged later that he was the one who brought the Riady money to Arkansas. Most of his dealings with the Riadys are now history; he backs Dole for President.

--Reported by J.F.O. McAllister with Clinton; Nina Burleigh, Viveca Novak and Mark Thompson/Washington; Donald Shapiro/Taipei and Michael Shari/Jakarta

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